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Sarasota GOP members accuse party of accounting problems

Republican Party of Sarasota chairman Joe Gruters, right, discusses some of the questions that have been raised about the bookkeeping by the party. With Gruters, is former party treasurer Matt Soldano who served as treasurer from 2010 to 2012. Two members of the Republican Party of Sarasota's internal audit committee resigned in protest last week, citing poor accounting practices within the party.

Published: Wednesday, May 1, 2013 at 1:33 p.m.

Last Modified: Wednesday, May 1, 2013 at 1:33 p.m.

SARASOTA - Two audit committee members of the Republican Party of Sarasota County have resigned in protest over accounting irregularities and reported their findings to the Sheriff's Office, seeking a criminal investigation.

The Sheriff's Office is taking no action on their complaint. Like the audit committee, sheriff's officials recommended that the party seek an external audit.

That the party's books are in disarray is not in question.

But Gruters, who acknowledged “technical errors,” is at odds with his own accountant, Eric Robinson, a CPA whom he hired last year, and a former party chairman.

In an interview Tuesday, Gruters said there is a $1,500 difference between what is on the books and what is in the bank.

Robinson put the difference at more like $80,000, and reacted strongly when told of Gruters' much lower estimate.

“I don't know why he would say that,” Robinson said. “That did not occur while I was doing the books. There's $80,000 more deposited than reflected in the books. I can't believe Joe told you it was $1,500.”

What followed was a flurry of phone calls, emails and spreadsheets from Gruters, including one in which he said the actual difference may be closer to $30,000. A few hours later, Gruters said the difference was about $12,000.

The party has been trying to reconcile the books since January.

“Once we go through and finish the reconciliation process and reorganize and fill in as needed all back up materials, I am confident we will have everything in order and everything will be accurate,” Gruters said in an email. “I am leading this process myself. This process has been ongoing for some time and we will get it right.”

Gruters has agreed to the external audit, using the same firm that audits the Republican Party of Florida.

It is a move Gruters said he took before the two audit committee members broke ranks and contacted the Sheriff's Office.

Gruters accused the two self-described whistleblowers, Jone B. Weist and Barbara M. Voegelin, of acting on behalf of his rivals within the Republican Party, who are seeking a “silver bullet” to remove him as party chairman.

“Why would two old ladies take a cheap shot and put themselves in the line of fire?” he asked. “It's a calculated political attack being done by more than these ladies.”

Weist disputes that: “I'm a worker bee. I have no political motivations. I'm one of the old ladies who waves signs and makes phone calls. We have no political aspirations at all.”

Accusations

Weist has served on the audit committee for three years, during which the party went through three volunteer treasurers, until Robinson was hired last year.

“The first year I thought the record-keeping was sloppy. The second year — also sloppy. This year, I am starting to think it could be criminal,” Weist said.

In a scathing email resignation, sent to Gruters, party members and others, Weist said her accounting concerns — which include a lack of supporting documentation for expenditures, inaccurate financial reporting, a lack of petty cash receipts and more — went unheeded.

“It clearly appears that something is seriously wrong, and despite our bringing this to everyone's attention, especially to you, the Chair, nothing substantive or constructive has been done,” Weist wrote.

Voegelin, like Weist, has a background in business and has served on the audit committee for three years.

She said Gruters pushed back when asked for additional financial information. Gruters said no one ever asked for additional information.

Voegelin does not regret going public.

“This is why we've done it: It's plain wrong. He's trying to say it's sour grapes, — ,” she said. “We're two women who have run our own businesses, and we can say this is wrong.”

Neither Weist nor Voegelin produced any examples of flawed or suspicious documentation.

Voegelin said she and Weist brought a stack of suspicious paperwork to Sheriff's Capt. Jeff Bell, the agency's chief of detectives.

A Sheriff's Office incident report states: “After a consultation, it was recommended that an external audit be conducted and if any evidence of a violation of Florida Statutes arise to contact the Sarasota County Sheriff's Office.”

Sheriff's spokeswoman Wendy Rose would not elaborate on the consultation.

“The report stands on its own. There is nothing that appears criminal in nature at this time, so it was suggested that the RPOS review its bylaws and have an external audit performed,” Rose said in an email. “Should any activities that violate Florida State Statutes be discovered then they should provide that documentation and make the complaint at that time.”

Gruters, a CPA himself, is quick to point out he has no oversight of the party's books.

Instead, his duties include overseeing nine clubs, eight committees, all candidate races and fundraising, in addition to handling complaints from the public and questions from the media.

“I am not a micro-manager,” he said.

'Sloppy, not shoddy'

A plastic box of records — no one is sure of the exact time period they cover — has been passed around from one volunteer treasurer to another. Their contents are a mish-mash of bills, receipts, bank statements and unrelated papers.

Before allowing an inspection of the box, Gruters pointed out he had never had actual possession of the documents.

Since Robinson took over the books, more standard financial controls have been established.

The CPA has the party's checkbook at his Venice office, and only Gruters or vice-chair Jamie Miller can authorize payment.

Robinson will amend the previous financial reports sent to the state level, and streamline the various online accounts established to receive donations.

It is a vast improvement over the old system, which used non-accountant volunteer treasurers.

Like his boss, Miller said Weist's suspicions have no merit.

“Basically, you have on person out there just bitching,” he said. “That's basically what you have here.”

The bookkeeping, he said, was “not any sloppier than any other volunteer organization that has a non-CPA, non-accountant as their treasurer. I'd call it sloppy, not shoddy.”

Miller signed the letter with the rest of the audit committee asking Gruters for an external audit.

“I'm fine with that. That's what we agreed upon,” he said.

The letter also states that the committee found no inaccuracies, but could not verify the accuracy of the supporting materials.

Sarasota County Charter Review Board member Anthony “Tony” Sawyer, a retired prosecutor from Ohio, has been on the audit committee for three months, attending only three meetings.

During one meeting, he and Weist pulled three payments from the records and then tried to find supporting materials.

“We looked at the first one, looked for documentation and couldn't find it. Same thing with the second item. Same thing with the third,” he said. “I was kind of frustrated, since we were supposed to do this job.”

He does not believe anyone stole money or committed any type of fraud.

“It is, charitably, sloppy housekeeping,” Sawyer said. “If I suspected anything illegal — I am an elected official — I wouldn't stay around for two seconds.”

<p><em>SARASOTA</em> - Two audit committee members of the Republican Party of Sarasota County have resigned in protest over accounting irregularities and reported their findings to the Sheriff's Office, seeking a criminal investigation. </p><p>All four members of the audit committee <A HREF="https://www.documentcloud.org/documents/695284-letter-from-republican-party-of-sarasota-audit.html" target="_blank">sent a letter to party chairman Joe Gruters recommending an external audit</a>.</p><p>The Sheriff's Office is taking no action on their complaint. Like the audit committee, sheriff's officials recommended that the party seek an external audit.</p><p>That the party's books are in disarray is not in question.</p><p>But Gruters, who acknowledged “technical errors,” is at odds with his own accountant, Eric Robinson, a CPA whom he hired last year, and a former party chairman.</p><p>In an interview Tuesday, Gruters said there is a $1,500 difference between what is on the books and what is in the bank. </p><p>Robinson put the difference at more like $80,000, and reacted strongly when told of Gruters' much lower estimate.</p><p>“I don't know why he would say that,” Robinson said. “That did not occur while I was doing the books. There's $80,000 more deposited than reflected in the books. I can't believe Joe told you it was $1,500.”</p><p>What followed was a flurry of phone calls, emails and spreadsheets from Gruters, including one in which he said the actual difference may be closer to $30,000. A few hours later, Gruters said the difference was about $12,000.</p><p>The party has been trying to reconcile the books since January.</p><p>“Once we go through and finish the reconciliation process and reorganize and fill in as needed all back up materials, I am confident we will have everything in order and everything will be accurate,” Gruters said in an email. “I am leading this process myself. This process has been ongoing for some time and we will get it right.”</p><p>Gruters has agreed to the external audit, using the same firm that audits the Republican Party of Florida.</p><p>It is a move Gruters said he took before the two audit committee members broke ranks and contacted the Sheriff's Office.</p><p>Gruters accused the two self-described whistleblowers, Jone B. Weist and Barbara M. Voegelin, of acting on behalf of his rivals within the Republican Party, who are seeking a “silver bullet” to remove him as party chairman.</p><p>“Why would two old ladies take a cheap shot and put themselves in the line of fire?” he asked. “It's a calculated political attack being done by more than these ladies.”</p><p>Weist disputes that: “I'm a worker bee. I have no political motivations. I'm one of the old ladies who waves signs and makes phone calls. We have no political aspirations at all.” </p><p><b>Accusations</b></p><p>Weist has served on the audit committee for three years, during which the party went through three volunteer treasurers, until Robinson was hired last year. </p><p>“The first year I thought the record-keeping was sloppy. The second year — also sloppy. This year, I am starting to think it could be criminal,” Weist said.</p><p>She has little faith in the external audit.</p><p>“They will only audit what's there,” she said. “You can't audit what's not there.” </p><p>In a scathing email resignation, sent to Gruters, party members and others, Weist said her accounting concerns — which include a lack of supporting documentation for expenditures, inaccurate financial reporting, a lack of petty cash receipts and more — went unheeded.</p><p>“It clearly appears that something is seriously wrong, and despite our bringing this to everyone's attention, especially to you, the Chair, nothing substantive or constructive has been done,” Weist wrote.</p><p>Voegelin, like Weist, has a background in business and has served on the audit committee for three years.</p><p>She said Gruters pushed back when asked for additional financial information. Gruters said no one ever asked for additional information.</p><p>Voegelin does not regret going public.</p><p>“This is why we've done it: It's plain wrong. He's trying to say it's sour grapes, — ,” she said. “We're two women who have run our own businesses, and we can say this is wrong.”</p><p>Neither Weist nor Voegelin produced any examples of flawed or suspicious documentation.</p><p>Voegelin said she and Weist brought a stack of suspicious paperwork to Sheriff's Capt. Jeff Bell, the agency's chief of detectives.</p><p><A HREF="https://www.documentcloud.org/documents/695281-sarasota-county-sheriffs-office-incident-report.html" target="_blank">A Sheriff's Office incident report</a> states: “After a consultation, it was recommended that an external audit be conducted and if any evidence of a violation of Florida Statutes arise to contact the Sarasota County Sheriff's Office.”</p><p>Sheriff's spokeswoman Wendy Rose would not elaborate on the consultation. </p><p>“The report stands on its own. There is nothing that appears criminal in nature at this time, so it was suggested that the RPOS review its bylaws and have an external audit performed,” Rose said in an email. “Should any activities that violate Florida State Statutes be discovered then they should provide that documentation and make the complaint at that time.”</p><p>Gruters, a CPA himself, is quick to point out he has no oversight of the party's books.</p><p>Instead, his duties include overseeing nine clubs, eight committees, all candidate races and fundraising, in addition to handling complaints from the public and questions from the media. </p><p>“I am not a micro-manager,” he said.</p><p><b>'Sloppy, not shoddy'</b></p><p>A plastic box of records — no one is sure of the exact time period they cover — has been passed around from one volunteer treasurer to another. Their contents are a mish-mash of bills, receipts, bank statements and unrelated papers. </p><p>Before allowing an inspection of the box, Gruters pointed out he had never had actual possession of the documents.</p><p>Since Robinson took over the books, more standard financial controls have been established.</p><p>The CPA has the party's checkbook at his Venice office, and only Gruters or vice-chair Jamie Miller can authorize payment.</p><p>Robinson will amend the previous financial reports sent to the state level, and streamline the various online accounts established to receive donations. </p><p>It is a vast improvement over the old system, which used non-accountant volunteer treasurers.</p><p>Like his boss, Miller said Weist's suspicions have no merit.</p><p>“Basically, you have on person out there just bitching,” he said. “That's basically what you have here.” </p><p>The bookkeeping, he said, was “not any sloppier than any other volunteer organization that has a non-CPA, non-accountant as their treasurer. I'd call it sloppy, not shoddy.”</p><p>Miller signed the letter with the rest of the audit committee asking Gruters for an external audit.</p><p>“I'm fine with that. That's what we agreed upon,” he said.</p><p>The letter also states that the committee found no inaccuracies, but could not verify the accuracy of the supporting materials.</p><p>Sarasota County Charter Review Board member Anthony “Tony” Sawyer, a retired prosecutor from Ohio, has been on the audit committee for three months, attending only three meetings.</p><p>During one meeting, he and Weist pulled three payments from the records and then tried to find supporting materials.</p><p>“We looked at the first one, looked for documentation and couldn't find it. Same thing with the second item. Same thing with the third,” he said. “I was kind of frustrated, since we were supposed to do this job.”</p><p>He does not believe anyone stole money or committed any type of fraud.</p><p>“It is, charitably, sloppy housekeeping,” Sawyer said. “If I suspected anything illegal — I am an elected official — I wouldn't stay around for two seconds.”</p>